Sector News

Danone sells US salads business Earthbound Farm to Taylor Farms

April 12, 2019
Food & Drink

Danone has signed an agreement to offload Earthbound Farm, the US organic salad business, to Taylor Farms.

California-based Earthbound, which had annual sales of around $400 million in 2018, produces a range of organic salads, vegetables, and fresh fruit.

The deal comes five years after WhiteWave Foods bought the business for $600 million. Danone acquired WhiteWave in 2016.

Danone said the deal forms part of its “portfolio management and capital allocation optimisation strategy”.

Taylor Farms, which is also based in California, said Earthbound Farm will join its Taylor Farms Retail Group and help lead growth in the organic fresh produce category.

In a statement, the company said: “We will build on Earthbound Farm’s tradition of organic authenticity, new variety development and quality focus with expanded regional organic growing and processing capability to better serve Earthbound Farm’s customers and consumers across North America.”

It added: “We are grateful for Danone’s stewardship of Earthbound Farm during the past two years and for the opportunity to return ownership of this organic fresh produce leader to local roots and family ownership.”

Last year, Danone recorded a 2.9% increase in like-for-like sales, benefiting from the strong performance of its specialised nutrition unit and water brands.

The Paris-headquartered company last year revealed plans to triple the size of its plant-based business by 2025 by combining its position in the dairy industry with the high plant-based growth potential. It is looking to grow plant-based sales from €1.7 billion to around €5 billion.

In February, Danone North America opened a new building at its DuBois, Pennsylvania, facility to increase production of plant-based foods.

By Jules Scully

Source: FoodBev

comments closed

Related News

February 4, 2023

Unilever names FrieslandCampina’s Hein Schumacher as next CEO

Food & Drink

Schumacher will replace Alan Jope, who announced his decision to retire last September, less than a year after a failed attempt by Unilever to buy GlaxoSmithKline’s consumer healthcare business and just months after activist investor Nelson Peltz joined the company’s board.

February 4, 2023

Tetra Pak execs flag plant-based ice cream development hurdles as indulgent offerings expand

Food & Drink

Globally, plant-based ice creams have doubled their share of the market over the last five years, according to Tetra Pack. Pea protein and coconut milk are leading the way, but Tetra Pak cites data showing that oat-based ice cream launches have doubled in the previous year.

February 4, 2023

Examining the meaning of eco-labels: Is it time for mandated methodology?

Food & Drink

A myriad of so-called eco-labels are being rolled out across various F&B products, but with no gold standard or strict rules governing precisely what the logos mean and what methodology is behind them, concerns are growing that they will confuse consumers and ultimately be counterproductive.

How can we help you?

We're easy to reach